Theresa May and Philip Hammond managed not to swear at each other (even occasionally) at a joint press conference this morning.
The official purpose of this awkward show of unity was to make dire warnings about the impact of the Labour manifesto on “ordinary working families.” Theresa May said:
“It means people will be paying the price of Labour; they’ll be pay the price in higher taxes, in lower wages, in higher prices and economy that will be in chaos.”
Let’s look at what is already happening on May’s watch:
- Lower wages: The Office for National Statistics has today confirmed that real wages went into reverse for the first time since September 2014, falling by 0.2%. The Resolution Foundation says wages will fall further by 0.5% in the coming months.
Confirmation that the pay squeeze has returned in today’s labour market stats – real regular pay fell by 0.2% in the three months to Mar-17 pic.twitter.com/659kX35p4s
— ResolutionFoundation (@resfoundation) May 17, 2017
- Higher prices: The Office for National Statistics yesterday revealed inflation has hit its highest rate since September 2013 at 2.7%. The cost of food, clothes, household goods, and transport all got more expensive. Rising inflation and falling wages means higher prices for families.
— Ian Jones (@ian_a_jones) May 17, 2017
- Higher taxes: The Labour party has ruled out raising taxes for 95% of people, with only the richest asked to pay more. In the last budget, Philip Hammond raised tax on self-employed people before being forced into a u-turn. But neither he nor Theresa May has ruled out raising tax or national insurance if they win.
IFS analysis of Labour tax plans:
— IFS (@TheIFS) May 16, 2017
IFS analysis of Tory tax and benefit plans:
— IFS (@TheIFS) May 14, 2017
On every measure Theresa May is overseeing the damage she claims Labour would cause. Chaos…